Government Contracts MonitorFalse Claims and False StatementsShort Takes: DOJ Recovers $3.8 Billion from False Claims Act Cases in Fiscal Year 2013February 12, 2014 In a recent press release, the Justice Department announced that it secured $3.8 billion in settlements and judgments from civil cases involving fraud against the government in the fiscal year ending September 30, 2013. The Department stated it was “the second largest annual recovery of its type in history.” Although health care fraud continued to be the dominant area of recovery for the… Taiwanese Circuit Boards Cost a Contractor Four Months in PrisonNovember 18, 2013 In a recent case, United States v. Precision Image Corporation, Inc. and Chih-Kwanh Hwa, No.13-CR-00226, U.S. District Court for the Eastern District of Washington, the owner of a circuit board supplier was sentenced to prison for selling Taiwanese-manufactured circuit boards to the U.S. Navy. Chih-Kwanh Hwa, Precision Image’s owner, successfully bid on $180,034 of Navy contracts for circuit… When You Agree to Put a Roof Over the Government’s Head, Give it the Right PriceOctober 14, 2013 The government recently settled a qui tam lawsuit against Tremco, Inc., a roofing restoration and supply company that is a subsidiary of RPM International, Inc., a multi-national holding company headquartered in Medina, Ohio. In United States, ex. rel. Gregory Rudolph v. Tremco Inc. and RPM International Inc., No. 10-CV-1192 (D.D.C. filed July 15, 2010) (complaint linked here), the relator… Northwestern University Settles False Claims Act Case for Nearly $3 MillionSeptember 4, 2013 Northwestern University (“Northwestern”) recently settled a federal False Claims Act (“FCA”) case brought by one of its former employees for nearly $3 million. See United States ex rel. Melissa Theis v. Northwestern Univ., et al., No. 09-C-1943 (N.D.Ill. July 30, 2013). Northwestern receives significant grant funding from the National Institutes of Health (“NIH”) for research conducted by… Competitors Are Continuing to Police One Another on Compliance IssuesAugust 7, 2013 More and more, government contractors have their competitors to blame when they find themselves on the wrong end of government enforcement efforts. Two recent cases involving General Services Administration (GSA) contractors underscore the dangers of non-compliance in today’s government marketplace – and how easily your business rivals can become whistleblowers. In the first, contractor… Anti-Kickback Act’s Reach Includes Vicarious Liability for an EmployerAugust 7, 2013 In a case of first impression, the Fifth Circuit held that a specific civil provision of the Anti-Kickback Act extends vicarious liability to an employer for the acts of its employees. In United States ex. rel. Vavra v. Kellogg Brown & Root, No. 12-40447 (5th Cir. 2013), the Court reversed a decision by the District Court which held that the Act does not allow the government to allege… SBA’s Final Size and Status Integrity Rule Is More Nuanced but It Still Has TeethJuly 23, 2013 The Small Business Administration (SBA) recently issued a final rule strengthening penalties for small businesses that misrepresent their size and/or special socioeconomic status. As previously explained here, the proposed rule adopted the aggressive approach manifest in the small business size and status integrity provisions of the Small Business Jobs Act of 2010. While the new rule largely… A Relationship Between a Government Employee and a Contractor Employee Leads to a Felony ConvictionJuly 17, 2013 In a recent federal criminal case, a former GSA Assistant Property Manager pled guilty to false statements and witness tampering in connection with a facilities contract for the Lloyd D. George federal Courthouse in Las Vegas, Nevada. In United States v. Underhill, No. 12-CR-00301, the defendant, Steven Underhill, had a relationship with a woman named “L.V.” (undisclosed in court documents… New Whistleblower Protections Are Now In Effect For Employees Of Federal Contractors And SubcontractorsJuly 12, 2013 Over the years, Congress has enacted many whistleblower protection statutes aimed at specific industries to encourage employees in those industries to report fraud, waste, and abuse. All federal government contractors – at every level - should be aware of the newest whistleblower protection statute that went into effect on July 1, 2013. The statute, 41 U.S.C. § 4712, applies to all… If You Want to Become a Whistleblower, You Probably Shouldn’t Plead Guilty to Defrauding the GovernmentJuly 10, 2013 In a recent federal court decision, United States ex rel. Schroeder v. CH2M Hill, No. CV-09-5038, (E.D. Wash, May 13, 2013), the Court granted the government’s motion to dismiss a qui tam relator, Carl Schroeder, because Schroeder pled guilty to conspiracy to defraud the government with respect to the exact same overbilling scheme on which his False Claims Act qui tam action was based. The Court… A Quote Is Not a Claim, but Be Ready for More Government CounterclaimsMay 10, 2013 When faced with a $95,115 Contract Disputes Act certified claim for improper cancellation of a purchase order for printed circuit cards, the United States Government didn’t just defend the claim – it went on the offensive by filing a False Claims Act (FCA) claim against the contractor. In Ulysses, Inc. v. United States, No. 06-436C (Fed. Cl. April 30, 2013), the Court of Federal Claims… Government Continues to Target Colleges and Universities with False Claims Act ClaimsApril 29, 2013 We've all known for a long time now that institutions of higher education are exposed to lawsuits, including those brought by whistleblowers and the Department of Justice (DOJ) under the False Claims Act (FCA). The upward trend in these cases that began a few years ago is continuing. While healthcare related claims continue to lead the way, representing more than half of the FCA… |
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